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Property Lawyers and Conveyancing Solicitors in Manchester at Ford Banks Irwin Solicitors for Charities

 
Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLY


Solicitors for Charities

Definitions and Terms used:

The Charities Act 1993 defines:

- 'Charity':  as 'an institution which -
(a) is established for charitable purposes only, and
(b) falls to be subject to the control of the High Court in the exercise of its jurisdiction with respect to charities'
- 'charitable purposes' as: 'a purpose which -
(a) falls within subsection (2) [ of the Charities Act 2006, which lists 13 descriptions of purposes], and
(b) is for the public benefit [the public benefit test being set out in section 3 of the Charities Act 2006]
Companies registered in England and Wales under the Companies Acts are therefore, subject to the Charities Act 1993 if their purposes are exclusively charitable under English Law.

- 'Trusts' in relation to a charity, means the provisions establishing it as a charity and regulating its purposes and administration, whether those provisions take effect by way of trust or not. For example, they include the memorandum and articles of a company charity.

- 'Trust corporation' means the Public Trustee (who is not allowed to accept trusts for charitable purposes), a corporation appointed by the Court in any particular case to be a trustee and a corporation entitled by rules made under section 4(3) of the Public Trustee Act 1906 to act as custodian trustee.  The corporations so entitled are listed in rule 30 of the Public Trustee Rules 1912.  The text of this rule has been substituted and amended on several occasions; for the present rule Conveyancing Solicitors and Property Lawyers should refer to Halsbury's Statutory Instruments.

- 'The Charity Commission' means the Charity Commission for England and Wales.  The Charity Commission is a body corporate incorporated pursuant to section 1 A of the Charities Act 1993.


The Charities Act 1992 defines 'charity trustees' as:
'...the persons having the general control and management of the administration of a charity'

In the case of a charitable company the charity trustees will normally be the directors of the company. Many of the duties imposed by the 1993 Act in connection with Property owned by or in trust for a charity fall on the charity trustees as so defined.  This is the case whether or not the charity trustees are themselves the registered proprietors of the Property


The requirements of the Charities Act 1993:

In addition to the requirements of the Land Registration Act 2002 and the Land Registration Rules 2003 Conveyancing Solicitors and Property Lawyers need to take into account the requirements of the Charities Act 1993 when making applications to register dispositions in favour of or by charities.

Most charities are subject to the jurisdiction of the Charity Commission. These are referred to here as 'non-exempt' charities.  This is to distinguish them from exempt charities.  The trustees of non-exempt charities are generally allowed to sell, mortgage or otherwise dispose of the charity's Property without an order of the Court or of the Charity Commission if they follow the correct procedures.  These procedures are not binding on exempt charities, and do not apply to certain specific transactions.

All dispositions of an estate in favour of a charity must contain a statement as to whether the charity is exempt or non-exempt and, if the latter, as to the restrictions on disposition imposed by the Charities Act 1993.  

All dispositions by a charity must contain an appropriate statement.  In the case of a non-exempt charity the disposition may also need to contain a certificate by the charity trustees.
 
The statements enable the registrar:
- when registering a non-exempt charity or its trustees as proprietors of Property, to enter an appropriate restriction, and
- when registering a disposal by a non-exempt charity, to be satisfied that the restriction has been complied with.

A transfer of a registered or unregistered estate on or in consequence of the appointment of a new charity trustee is not a 'disposition' for the purposes of ss36 and 37 of the Charities Act 1993. Therefore, none of the statements described are required to be included in a deed that appoints, or by virtue of s.83 Charities Act 1993 has the effect as if it appointed, a new trustee or is made in consequence of the appointment of a new charity trustee.  For any further clarification please speak to your conveyancing solicitors and property lawyers.

However, a transfer of an unregistered freehold estate or an existing leasehold estate with more then seven years to run, which is made on or in consequence of a new charity trustee, will trigger compulsory first registration under s. 4(1)(aa) of the Land Registration Act 2002 and, in the case of a non-exempt charity, the application for first registration must be accompanied by an application to enter the appropriate restriction.

 

(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)

  
. . . continued on page 2 (Property Lawyers and Conveyancing Solicitors in Manchester page 2)

If you require any further information please telephone 0161 866 8999 and we will be happy to help.

    

Contact Us

Ford Banks Irwin Solicitors
50 Stothard Road
Manchester
M32 9HB


Tel: 0161 866 8999
Fax: 0161 866 8333
E-mail: info@FordBanksIrwinSolicitors.co.uk

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Manchester City Centre Serviced Office - Conference rooms are also available by prior appointment at:
Ford Banks Irwin Solicitors | Solicitors in Manchester
Pall Mall Court 
King Street
Manchester
M2 4PD

Tel: 0161 866 8574

 

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